Q1 2025 Electromagnetic Geoservices ASA Earnings Call Transcript
Key Points
- ElectroMagnetic GeoServices ASA (FRA:E2M) reported a revenue increase to $10 million for the first quarter, indicating growth from the previous quarter.
- The company successfully completed the first proprietary contract in India and commenced mobilization for a second project, showcasing operational progress.
- The acquisition of the offshore subsea construction vessel, CMD, marks a strategic expansion into the subsea construction market, potentially diversifying revenue streams.
- The extension of the convertible bond loan until November 2030 provides financial stability and flexibility for future operations.
- The demand for subsea tree installations is expected to increase significantly, which could benefit the company's new subsea business segment.
- Free cash decreased by $3.1 million in the first quarter, reducing the cash position to $6 million.
- Operational costs increased to $8 million in the first quarter, up from $4.7 million in the previous quarter, impacting profitability.
- The vessel utilization rate was only 37% during the quarter, indicating underutilization of resources.
- The company faces uncertainty in securing projects in West Africa, with potential delays due to permit requirements.
- The acquisition of the CMD vessel involves significant financial commitments, including a $109 million purchase price and a $42,000 daily bareboat charter rate, which could strain financial resources.
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Welcome to the presentation of EMS's first quarter 2025 results. I'm here with our CFO and I'm starting to get we will present these results. Please take note of our disclaimer. During the quarter, the vessel arrived in India and after successful inward clearance and all formalities in place, it started working on the first of the two proprietary acquisitions in the KG Basin on the east coast of India. Upon completion of this project, we started the mobilization for the 2nd project where the vessel is currently acquiring data.
The revenues for the quarter came in at $10 million. The EBITDA was $2.7 million, and the adjusted EBITDA was $2 million. And finally, the net profit was $0.6 million. The free cash at the end of the quarter fell to $6 million. After the quarter, we announced the establishment of a new business platform for EMGS with the acquisition of the offshore subsea construction vessel, the CMD. We'll talk more about this later in the presentation. We have also secured an extension of our convertible
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